EU to Microsoft: IE browser selection error violated antitrust deal

Microsoft could face a fine of up to $7 billion—although it's very unlikely.

The European Union has charged Microsoft with an antitrust violation, saying that it did not live up to the terms of its 2009 deal with the 27-nation bloc.

Joaquín Almunia, the European Union antitrust commissioner, told reporters in Brussels on Wednesday that the American software giant has not taken adequate steps to abide by a previous agreement that enables Windows users to choose which Internet browser to use, rather than automatically defaulting to Internet Explorer.

As we reported last month, earlier this year, some discovered that Windows 7 users running Service Pack 1 were not offered a browser ballot—mandated as part of the 2009 settlement—due to what the company called a "technical error." In the wake of this discovery, the European Commission launched an antitrust investigation, which has now culminated in new violations.

“We take this matter very seriously and moved quickly to address this problem as soon as we became aware of it,” Microsoft said in a statement sent to the media.

“Although this was the result of a technical error, we take responsibility for what happened, and we are strengthening our internal procedures to help ensure something like this cannot happen again.”

Microsoft began rolling out a ballot application to Windows 8 users on September 4 to make sure that the browser ballot is present in the latest version of Windows. That still may not be enough for the EU’s top competition watchdog.

“We have raised issues with Microsoft relating to Windows 8,” Almunia told reporters in Brussels. “If a user decides to set a rival browser as a default browser, there should not be an unnecessary warning in Windows or confirmations by the user and the Internet Explorer icon should also be unpinned from the Start screen. We expect Microsoft to address these issues.”

Under EU law, Almunia could hit Microsoft with a fine totaling a maximum of 10 percent of the company’s global annual revenue, which in this case would be $7 billion—but it seems unlikely that it would get to that point. For now, the highest fine the EU has issued was $1.4 billion. Intel was the 2009 recipient of that fine, in a case that remains on appeal.

Ah,yes,with an economy circling the drain and rising euroscepticism, what people really need to focus their attention on is a 'browser selection screen' that probably noone other than the legislators that mandated it cares about On the flip side, I guess a couple billion is a nice shakedown,errr,fine to make people follow the rules.

it seems to me EU wants to fund their bailout from Microsoft, seriously why dont they ask apple why they dont allow any other web engines in iOS, because they are spineless. if i was Microsoft i would pull out of EU market for few months, yes they will lose money, but you are losing it anyway so it might be for good cause

I purchased Windows 7 sp1 OEM, and kinda wondered why I didn't see that browser ballot. But figured it was because it was an OEM version, and it wouldn't apply to those as the PC manufacturers would preconfigure the PCs themselves prior to the consumer seeing the OS.

Well it took everyone 1 year + to notice, and obviously Microsoft didn't do it on purpose. And has also stated that it will make good by extending the ballot to Windows 8.

That 7 billion Euro fine is just Hyperbole, dunno why that was neccesary to mention. To see how many trolls we can attract for the new +/- system?

“If a user decides to set a rival browser as a default browser, there should not be an unnecessary warning in Windows or confirmations by the user and the Internet Explorer icon should also be unpinned from the Start screen. We expect Microsoft to address these issues.”

This doesn't happen for any other operating system. I understand the EU THINKS this should be the case, but unles Microsoft's agreement says thats the case, I hope the hold strong.

The browser selection process is already stupid enough no reason to break Windows 8. Furthermore..Internet Explorer is not removed from the Start Menu in the case of Windows 7, why must it be removed from the Start Screen but not the Start Menu?

On a more serious note - I always hear about the EU launching huge fine attempts against American companies but never European ones. Obviously this is an American website so the reporting is less than euro-centric, but I assume they do right? This isn't some sort of backdoor protectionism, right?

and the Internet Explorer icon should also be unpinned from the Start screen.

Wat.

So when I install a rival product, the original should go away? I'm aware of the monopolistic issue, but the EU is going way overboard with these restrictions.

I am using Windows 7 sp1, and I can tell you it all ready does that by default. It only pins the programs you use most often, and Internet Explorer is not there on my start menu. I have to select "show all programs" to find it.

Ah,yes,with an economy circling the drain and rising euroscepticism, what people really need to focus their attention on is a 'browser selection screen' that probably noone other than the legislators that mandated it cares about On the flip side, I guess a couple billion is a nice shakedown,errr,fine to make people follow the rules.

Clearly Microsoft has been volunteered by the EU to fund the bail out of Greece.

I'm wondering if the browser ballot had any significant effect on the browser marketshare? Are there any metrics which indicate that in the EU Windows user use an alternate browser more than they do in North America?

I don't think that Opera's marketshare has significantly increasae since the advent of the browser ballot (and they were among those who pushed for it the most).

Even without the browser ballot people STILL install Chrome and Firefox of their own accord (and both achieved pretty significant marketshare).

Ah,yes,with an economy circling the drain and rising euroscepticism, what people really need to focus their attention on is a 'browser selection screen' that probably noone other than the legislators that mandated it cares about On the flip side, I guess a couple billion is a nice shakedown,errr,fine to make people follow the rules.

Clearly Microsoft has been volunteered by the EU to fund the bail out of Greece.

Yep. Next up - Apple and Google, because someone has to take up the slack when Germany gets fed up with paying for someone else's mistakes

On a more serious note - I always hear about the EU launching huge fine attempts against American companies but never European ones. Obviously this is an American website so the reporting is less than euro-centric, but I assume they do right? This isn't some sort of backdoor protectionism, right?

I agree that Microsoft shouldn't have added that second verification for changing default browser. It's not even very clear that's what is for. I was confused why IE was still opening as default browser even though I set it to Firefox. I had no idea the box that said "you have a new application to browse the internet" had anything to do with my default browser. I didn't realize that's what it was for until I tried changing it a second time.

A decade ago one could argue that MS were abusing their OS dominance to successfully force other browsers out of the market. But that's no longer the case. The "market" (however that's defined when including both proprietary and FOSS software) self-corrected, and IE is now struggling to stay afloat above Firefox and Chrome.

I dislike MS, Windows, and IE as much as the next Linux user. But if I'm being intellecually honest, this whole kerfuffle between MS and the EU is ridiculous, not to mention frightening. Sure, no one minds MS getting a black eye, but is that simply because it's fun to hate MS, or because you really think that bundling a default browser is unfair? Google's Chrome OS bundles a default browser which cannot be replaced. If Chrome OS [amazingly] becomes a huge player, do we want browser ballots forced on it?

While my perspective is entirely US-based, I observe that EU law/legal trends are a good indicator of US law/legal trends in 10-20 years. That's why I hate to see this. At best, it's unnecessary, and at worst it will be harmful to companies we are more favorable towards.

That 7 billion Euro fine is just Hyperbole, dunno why that was neccesary to mention. To see how many trolls we can attract for the new +/- system?

That's certainly true,but the point remains that it's a laughable 'problem' to focus any attention on at this time given the way more serious issues the EU has than the browser ballot.

It is a bit farcical by now.

But what exactly should the EC do in this situation? They ordered Microsoft to do something, which they then forgot. Should they just then say, "oh well, never mind then"?

They have to react in some way, or it is even more farcical. I expect along the lines of something symbolic and please do it now this time. I am absolutely sure Microsoft did not do this out of malice, and no one is accusing them of it.

I don't see why Ars needs to go all hyperbole over what is essentially an amusing situation. I mean for gods sake, no one bloody noticed for more than a year, not Google, Mozilla or Opera.

If I were in their (Microsoft's) position, I would hit them back with an anticompetitive lawsuit. Some of these restrictions have gone way overboard, and a lot of them only apply to Microsoft products exclusively.

I purchased Windows 7 sp1 OEM, and kinda wondered why I didn't see that browser ballot. But figured it was because it was an OEM version, and it wouldn't apply to those as the PC manufacturers would preconfigure the PCs themselves prior to the consumer seeing the OS.

Well it took everyone 1 year + to notice, and obviously Microsoft didn't do it on purpose. And has also stated that it will make good by extending the ballot to Windows 8.

That 7 billion Euro fine is just Hyperbole, dunno why that was neccesary to mention. To see how many trolls we can attract for the new +/- system?

Really? They "Obviously" didn't do it on purpose? I wouldn't put it past them...

If I were in their (Microsoft's) position, I would hit them back with an anticompetitive lawsuit. Some of these restrictions have gone way overboard, and a lot of them only apply to Microsoft products exclusively.

This is the problem. Why does it only apply to Microsoft, because they are most popular? Well if you let everyone else bundle it just increases the risk that they will get to where Microsoft was at.Rules should be for everyone, they should never be targeted to hurt specific companies, ever.

I agree that Microsoft shouldn't have added that second verification for changing default browser. It's not even very clear that's what is for. I was confused why IE was still opening as default browser even though I set it to Firefox. I had no idea the box that said "you have a new application to browse the internet" had anything to do with my default browser. I didn't realize that's what it was for until I tried changing it a second time.

That screen is basically the equivalent of what you see in android where every time an app registers itself to handle a certain type of content you get a prompt about changing the default.

While I might not love Microsoft, this ballot thing is insane. Why isn't the EU consistent and hit Apple for browser locking in iOS, or recognize that when you purchase a Microsoft product it will be bundled with other Microsoft products?

I'm wondering if the browser ballot had any significant effect on the browser marketshare? Are there any metrics which indicate that in the EU Windows user use an alternate browser more than they do in North America?

Basically, Europe and WW follow the same trend: Chrome is shooting up, IE and Firefox are dropping, Opera and Safari are drops in the bucket.The states has IE still going strong, Chrome seems to be going up at the expense of Firefox, Safari is much stronger than in Europe but still the lowest of the "major" browsers by a decent margin.

Zeebee wrote:

I don't think that Opera's marketshare has significantly increasae since the advent of the browser ballot (and they were among those who pushed for it the most).

Opera sits between Safari and "other" in Europe, and is neck and neck with "other" in the states and WW.

I purchased Windows 7 sp1 OEM, and kinda wondered why I didn't see that browser ballot. But figured it was because it was an OEM version, and it wouldn't apply to those as the PC manufacturers would preconfigure the PCs themselves prior to the consumer seeing the OS.

Well it took everyone 1 year + to notice, and obviously Microsoft didn't do it on purpose. And has also stated that it will make good by extending the ballot to Windows 8.

That 7 billion Euro fine is just Hyperbole, dunno why that was neccesary to mention. To see how many trolls we can attract for the new +/- system?

Really? They "Obviously" didn't do it on purpose? I wouldn't put it past them...

Well, the alternative would be "hey, lets remove the browser ballot and see what happends". Do you think that's plausible?

Well it took everyone 1 year + to notice, and obviously Microsoft didn't do it on purpose. And has also stated that it will make good by extending the ballot to Windows 8.

Really? They "Obviously" didn't do it on purpose? I wouldn't put it past them...

Every other service pack since the decision has supported the ballot thing, they just changed their mind and stopped complying with this one? Strange decision if the alternative is their official explanation, of "we accidentally pushed the "normal" SP1 to Europe".

Please note that the market took care of this issue, largely. All it took was faster moving, innovative competitors. No one regulated Google or Mozilla into existence.

That Europe lacks a home-grown browser alternative of the caliber of Chrome or Firefox is their own fault.

(I use Opera. I know it exists. I know it's sometimes regarded as a superior browser for standards compliance. I find it to be incompatible with sites as often as not, therefore, I don't use it much. Even in Europe, Opera isn't very popular.)

This is pretty ridiculous. Users have always had a choice. It's pretty asinine that the EU feels it needs to force a company to hassle users with yet another useless option. If a user wishes to use Firefox or some other browser they are free to install it and use it. This "feature" does nothing to protect the user or improve the user's experience. Companies need to stand up to the EU and tell them to F themselves.

While I might not love Microsoft, this ballot thing is insane. Why isn't the EU consistent and hit Apple for browser locking in iOS, or recognize that when you purchase a Microsoft product it will be bundled with other Microsoft products?

Because Apple writes the software for the hardware they sell, and they are hardly a monopoly. This ruling is related to desktop computers where Microsoft still has around 90% market share. They also can't bundle Windows Media Player in the EU either.

And you can use other browsers on iOS, the restriction is that you have to use the Safari/Webkit engine to power it. This is justified as a security measure.

Because Apple writes the software for the hardware they sell, and they are hardly a monopoly. This ruling is related to desktop computers where Microsoft still has around 90% market share. They also can't bundle Windows Media Player in the EU either.

If I were in their (Microsoft's) position, I would hit them back with an anticompetitive lawsuit. Some of these restrictions have gone way overboard, and a lot of them only apply to Microsoft products exclusively.

This is the problem. Why does it only apply to Microsoft, because they are most popular? Well if you let everyone else bundle it just increases the risk that they will get to where Microsoft was at.Rules should be for everyone, they should never be targeted to hurt specific companies, ever.

When Apple gets to 90% for a prolonged period they will get it as well. If Android didn't roll in, blackberry died off, and windows phone remained limited I suspect that Apple may have been forced to allow side loading of apps or a choice of app stores...